Jane Doe (zero tax) expects ABC Company to begin paying dividends on an annual basis at the

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Jane Doe (zero tax) expects ABC Company to begin paying dividends on an annual basis at the end of two years. She expects the first annual dividend to be one dollar and further expects dividends to grow continuously at a rate of 4 percent thereafter. What is the maximum price she would be willing to pay for the stock today if she wants to earn at least 12 percent on her investment?

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